The company said the business climate remains challenging, but it sees several growth opportunities.

"We believe the IT spending environment will be favorable to large offshore players like us, even though the macro environment is challenging," Ashok Vemuri, head of banking and capital markets at Infosys, said in a statement on Friday.

Indian outsourcers that offer Western firms technology and back-office services are expanding into Europe and Asia-Pacific to cut their dependence on an uncertain U.S. market that generates more than half their revenue.

Nasdaq-listed Infosys said October-December net profit rose to 12.31 billion rupees (US$313.23 million) from 9.83 billion rupees a year earlier. Net profit was boosted by a tax reversal of 500 million rupees.

Although firms such as Infosys, top exporter Tata Consultancy Services and third-ranked Wipro have increased currency hedges, margins were further squeezed as there were fewer working days in October-December.

Infosys shares lost 6.8 percent in October-December, compared with a 2.1 percent drop in the sector index and a 17 percent rise in the BSE index, as investors fretted about the impact of a slowing U.S. economy.